10 December 2014
Transcontinental sees a revenue increase in fourth quarter
MONTREAL— Transcontinental’s revenues increased by 1.7% in the fourth quarter to $571.9 million from $562.6 million. The company’s year-end revenues decreased by 1.3% from $2,096.7 million to $2,069.4 million.

The increase in revenues is due to the acquisitions of Capri Packaging and the Quebec weekly newspapers from Sun Media Corporation as well as new printing and distribution agreements. The year-end dip is caused by lower advertising revenues in the newspaper and marketing-products printing activities, consumer magazines and the sale of Rastar’s assets.

In the fourth quarter Transcontinental’s adjusted net earnings increased by 20.6% to $67.4 million from $55.9 million. Its adjusted net earnings for fiscal 2014  rose 13.4% to $168.2 million from $148.3 million.

"We signed new printing and distribution agreements, consolidated the weekly newspaper market in Quebec and diversified our operations by investing in a new area of growth, flexible packaging,” President and chief executive officer of Transcontinental said. “We also divested certain segments that no longer met our growth requirements and continued to adapt our cost structure to market realities. We believe that by continuing to maximize our printing platform, by strengthening the Media Sector, by growing our digital offering and by developing the packaging division we will be able to keep generating significant cash flows and maintain our excellent financial position so that we can continue our transformation.”

During fiscal 2014 Transcontinental completed the acquisition of the assets of Capri Packaging, a flexible solutions supplier based out of Clinton, Missouri. The acquisition will add $72 million to Transcontinental’s revenue.  The company has also completed the acquisition of Sun Media Corporation’s Quebec-based weekly newspapers and websites. The acquisition will add $20 million to Transcontinental’s operating earnings, and will increase TC Media’s newspaper portfolio in Quebec to 110 titles.

Late this year, Transcontinental sold its consumer magazines and all related platforms produced in Montreal and Toronto to the TVA Group for $55.million.

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